here, Phil Labau with the details of what's going on here. Phil, a terrible quarter, Scott, any way you look at it, because all of the key metrics, they missed. And if you take a look at earnings per share, revenue, unit sales, all of them were below expectations.EPS of 99 cents. Street was expecting a buck five revenue below expectations. Vehicle sales down 4.1% compared to last year.By the way, that's wholesale as well as retail vehicle sales. But this is the stat that really spooked the street about CarM ...

Core Insights - CarMax (KMX) shares dropped 20% following disappointing Q2 financial results, highlighting challenges in the used car market [1] - The company reported earnings of $0.64 per share, significantly below the $1.03 forecasted by analysts, with a 6% year-over-year revenue decline [1] Financial Performance - CarMax's earnings fell short of expectations, indicating retail weakness and pressure on auto finance [3] - The gross profit per retail used unit was $2,216 in Q2, showcasing solid unit margins despite overall financial challenges [4] Strategic Initiatives - Management announced a $150 million cost-cutting initiative to enhance operational efficiency in response to deteriorating financials [3] - The company repurchased $180 million worth of shares in Q2 and plans to continue its aggressive buyback program [4] Digital Transformation and Growth Potential - Approximately 80% of unit sales are now supported by digital capabilities, positioning CarMax well for future growth [5] - The company has a strong balance sheet with a net leverage ratio of 1.5x, providing stability during challenging times [5] Market Sentiment and Valuation - KMX shares are currently trading at 15 times earnings, suggesting potential value for long-term investors [6] - The recent selloff has led to significant risk pricing, with an RSI of 20.24 indicating oversold conditions [6] - Wall Street remains bullish on CarMax stock for the next 12 months, indicating confidence in the company's recovery [8]

LOS ANGELES--(BUSINESS WIRE)--The Law Offices of Frank R. Cruz continues its investigation of CarMax, Inc. ("CarMax†or the "Company†) (NYSE: KMX) on behalf of investors concerning the Company's possible violations of federal securities laws. IF YOU ARE AN INVESTOR WHO LOST MONEY ON CARMAX, INC. (KMX), CLICK HERE TO INQUIRE ABOUT POTENTIALLY PURSUING A CLAIM TO RECOVER YOUR LOSS. What Is The Investigation About? On April 10, 2025, CarMax released its fourth quarter and fiscal year 2025 financia. ...

Core Insights - CarMax reported disappointing earnings for its fiscal second quarter, with profits of $0.64 per share and sales of $6.6 billion, falling short of analyst expectations of $1.03 per share and $7 billion in sales [1][3][4] - Year-over-year sales declined by 6%, which is worse than the company's 5.4% decline in retail sales, indicating weaker customer demand and lower prices [3][4] - The overall car demand is weakening, as CarMax purchased 2.4% fewer cars for resale, reflecting management's outlook on market demand [4] Financial Performance - CarMax's profits plunged by 25% year over year, contrary to analyst expectations for growth [4][5] - The company is cutting selling, general, and administrative spending by $150 million over the next 18 months in response to the challenging quarter [5] - With a market capitalization of $6.9 billion and trailing profits of $521 million, CarMax's valuation stands at 13.2 times earnings, which may appear attractive given analysts' long-term earnings growth forecast of 16% [6] Market Outlook - Analysts were caught off guard by the unexpected earnings decline, raising concerns about the reliability of future growth predictions [6] - If the current trend continues, despite the seemingly low valuation, CarMax stock could be viewed as a sell [7]

Shares of CarMax (NYSE: KMX ) have been a poor performer over the past year, and investors received more bad news Thursday morning. Very weak results sent shares plunging 20% in early trading, and the stock is now down nearly 40% from a year ago. Thus far, newOver fifteen years of experience making contrarian bets based on my macro view and stock-specific turnaround stories to garner outsized returns with a favorable risk/reward profile. If you want me to cover a specific stock or have a question for an art ...

Shares of CarMax (NYSE: KMX ) have been a poor performer over the past year, and investors received more bad news Thursday morning. Very weak results sent shares plunging 20% in early trading, and the stock is now down nearly 40% from a year ago. Thus far, newOver fifteen years of experience making contrarian bets based on my macro view and stock-specific turnaround stories to garner outsized returns with a favorable risk/reward profile. If you want me to cover a specific stock or have a question for an art ...

Core Viewpoint - CarMax Inc. experienced a significant decline in its stock price following a surprising drop in comparable sales, attributed to a rush of buyers in the previous quarter ahead of an impending tariff on imported cars [1] Company Summary - CarMax's shares fell as much as 10% in premarket trading on Thursday [1] - The company's stock has decreased by 30% year-to-date [1]

Thesis : KMX’s poor quarterly results took a big bite out of the company’s valuation. Following the steep decline, I suspect share prices are bottoming out and may recover a bit. It is, in my opinion, too late to sell, althoughMarkets rise and fall, booms come and go, and the world keeps ticking. Ultimately, I believe observing megatrends, as difficult as they can be to spot, let alone fully comprehend, can yield insights into the advance of human society, which in turn could pave the way for many useful in ...

Thesis : KMX’s poor quarterly results took a big bite out of the company’s valuation. Following the steep decline, I suspect share prices are bottoming out and may recover a bit. It is, in my opinion, too late to sell, althoughMarkets rise and fall, booms come and go, and the world keeps ticking. Ultimately, I believe observing megatrends, as difficult as they can be to spot, let alone fully comprehend, can yield insights into the advance of human society, which in turn could pave the way for many useful in ...

Core Insights - CarMax reported earnings per share (EPS) of $0.64, which was below the estimated $1.03, and revenue of approximately $6.59 billion, falling short of the expected $7.02 billion, indicating challenges in the current market environment [2][6] - The company experienced a decline in used-car sales, with retail used unit sales decreasing by 5.4% and comparable store used unit sales falling by 6.3%, which significantly impacted its stock value and financial performance [3][6] - Despite the decrease in sales volume, CarMax maintained solid unit margins, with a gross profit per retail used unit of $2,216 and $993 per wholesale unit, indicating profitability on a per-unit basis [4][6] Financial Metrics - CarMax has a price-to-earnings (P/E) ratio of approximately 15.54 and a price-to-sales ratio of about 0.32, reflecting its market valuation [5] - The enterprise value to sales ratio is around 0.98, and the enterprise value to operating cash flow ratio is approximately 25.17, indicating the company's financial health [5] - The debt-to-equity ratio is about 2.85, suggesting significant financial leverage, but the company maintains a strong liquidity position with a current ratio of approximately 2.39, allowing it to cover short-term liabilities [5]